IBM and Hitachi down as Dell and HPE expand into global storage market: IDC – Servers & Storage

IBM and Hitachi continued to see lower external storage sales as revenues from Dell, HPE and NetApp increased in the second quarter of 2021, according to research firm IDC.

IDC’s quarterly corporate external OEM storage revenue is one of the basic barometers showing the health of the storage business and, for the second calendar quarter of 2021, it shows that the industry is healthy.

IDC estimates second-quarter sales to reach US $ 6.93 billion, up 9.7% from the estimated US $ 6.31 billion for second-quarter 2020 sales. Things look even better in 2020. terms of volume, where IDC estimated total OEM storage capacity increased 27.9 percent from a year ago to 22.1 exabytes for the quarter.

However, IDC’s global enterprise external OEM storage revenue list has its limitations, for example in that it only includes external storage and does not include internal storage that companies like Dell and HPE ship with. servers or PCs.

The quarterly report also reflects the fact that companies are changing the way they buy storage. Storage decisions are more likely to be made based on what will help businesses grow and generate profits, not where and how data is stored.

Dell Technologies

Dell Technologies’ storage business performed very well according to IDC, but less well according to Dell.

IDC announced that Dell’s global enterprise external OEM storage revenue for the second calendar quarter of 2021 reached $ 1.86 billion, up a very respectable 10.1% from the second quarter of 2020, giving to Dell a 26.8% share of the total market.

However, this contradicts Dell’s own reports. Dell, for its fiscal second quarter 2022, which ended July 30, reported storage revenue of US $ 4 billion, down 1% year-over-year. Dell’s figure, however, is for all storage, including storage sold with its servers as well as Dell’s storage software sales.

Jeff Clarke, vice president and co-COO of Dell, based in Round Rock, Texas, said Dell has the broadest storage portfolio in the market, with the highest market share in the market. top of the line. mid-range, entry-level, unstructured, object, all-flash, and software-defined storage.

He also said that Dell’s mid-range storage sales grew 17% year-on-year, but high-end storage sales fell due to the cyclical nature of this product segment. He also called the Dell PowerStore the fastest growing product the company has ever launched in its first five quarters.

Hewlett Packard Enterprise

HPE had a strong second 2021 calendar quarter in storage, with IDC reporting global enterprise external OEM storage revenue of $ 756.7 million, up 14.7% year-on-year last, giving HPE a 10.9% market share for the quarter. Like Dell, IDC’s revenue estimate does not include a significant amount of storage sold with its servers and other devices.

HPE said storage revenue for its fiscal third quarter 2021, which ended July 31, was $ 1.2 billion, up 4% from the previous year period .

The company saw 10% year-over-year growth in software-defined storage sales, including sales of its Nimble storage technology. Sales of the company’s all-flash storage arrays increased by more than 30% from last year, notably thanks to the HPE Primera line.

NetApp

NetApp, which a few years ago seemed like a diminished force in the storage industry, continues to march forward from success to success. The company achieved worldwide corporate external OEM storage revenue of $ 685 million, giving it a 9.9% market share, according to IDC. This turnover increased by 11.8% compared to last year.

Unlike Dell and HPE, NetApp is an outright storage vendor and does not provide any servers or other devices with internal storage.

NetApp, for its first fiscal quarter of 2022, which ended July 30, reported total revenue of $ 1.46 billion, up 11.9% year-over-year. This included sales of US $ 730 million. NetApp also reported that its all-flash storage business increased 23% from last year. However, for NetApp, the future is in the cloud.

The company has taken the lead among legacy storage providers by transforming its storage technology to work in public and private clouds, allowing customers to seamlessly migrate data between on-premises, hybrid cloud, and public cloud. This means that the total amount of data managed by NetApp technology may increasingly not be on its own hardware.

Huawei

Huawei, based in China, is the growth leader in storage. IDC estimates that Huawei reported its second 2021 global enterprise external OEM storage revenue of $ 619.5 million, an increase of 26.7 percent from last year.

At this rate of growth, it may be a few quarters before Huawei overtakes NetApp as the third supplier and begins to threaten HPE for second place. IDC estimates that Huawei has an 8.9% market share.

Indeed, the only thing holding Huawei back is its lack of an American market. Due to alleged ties between the company and the Chinese government, the company is effectively excluded from the United States, which is the world’s largest storage market.

Hitachi Vantara

Hitachi, which includes Hitachi Vantara, ranked fifth in the global enterprise external OEM storage market with revenue of US $ 338.3 million, down 4.0% from IDC compared to last year. This was enough to give the company a 4.9% market share.

For Hitachi, storage is becoming a smaller part of its business as the company continues to experience solid growth in the data analytics, data operations, IoT and cloud markets. Yet Hitachi is far from giving up storage.

The company introduced its first mid-range all-flash storage arrays and its first Storage-as-a-Service offering late last year. Much of the company’s storage is for some of the higher-value offerings it offers to customers, such as data analytics.

IBM

According to IDC, IBM’s global enterprise external OEM storage sales were the most impacted by the top seven vendors, falling 36.0% from last year to $ 322.9 million and a share market share of 4.7%.

In its fiscal second quarter 2021 financial report, IBM did not break down its storage sales, instead including it with its mainframe and Power server sales, although the company said sales of storage systems had fallen. by 7% compared to last year. But looking at IBM’s storage hardware sales isn’t the best way to understand its storage business.

IBM’s storage growth comes from its software-defined storage sales, where margins are high even though sales are lower than full storage systems.

Pure storage

Pure Storage was ranked # 7 on IDC’s list of the world’s leading vendors of external OEM enterprise storage. IBM estimated Pure Storage’s revenue at $ 287.4 million, up 12% from a year ago, giving it a 4.1% market share. Considering the growth rate of Pure Storage and declining sales of external storage from Hitachi and IBM, Pure Storage is expected to reach fifth place soon.

Pure Storage said in August that its total revenue for its fiscal second quarter, which ended August 1, reached $ 496.8 million, including $ 324.9 million in product revenue and 171, $ 9 million in subscription service revenue.

Pure Storage is similar to its rival NetApp in two key areas. First, it is an outright storage vendor and does not have any servers or other hardware that can include internal storage. And the company is also quickly moving into the cloud with measures such as acquiring the Kubernetes Portworx storage container and the ability to use its storage technology easily in a cloud or as a service.

The rest of the market

The rest of the market saw global first-quarter enterprise OEM external storage system sales of about $ 2.06 billion, or 29.7 percent of the total market, according to IDC. This represents a growth of 17.6% compared to last year.

The rest of the market includes storage sales from small vendors, as well as sales to hyperscaler cloud vendors.

This article originally appeared on crn.com